We all know that there’s been an ongoing tug-of-war between tech giants and regulatory bodies. The European Union (EU) has been at the forefront of this tug-of-war, slapping hefty fines and passing new regulations that are forcing tech giants to comply or lose access to the region. Its unabashed push for massive ecosystem reforms has just garnered another victory.
Apple just announced a sweeping set of changes to its business terms for applications across the European Union. The move marks a major turning point, resolving long-standing disagreements between the two parties, particularly when it comes to alternative distribution, payment processing, and core business models. The changes are designed to simplify a historically complex and friction-heavy framework. They also bring every single developer distributing apps in the region under a single, unified set of business terms that officially go into effect starting October 1. Developers can begin reviewing and signing these new terms right away, giving them time to adapt and adjust their financial strategies.
At the heart of this major announcement is a complete restructuring of how Apple charges developers for operating and scaling on its platforms. One of the most talked-about pain points for studios scaling up in the region has been the Core Technology Fee. This fee is a per-install charge that has caught plenty of flak and friction from larger independent developers and enterprise publishers alike. Under the brand-new model, Apple is officially doing away with that per-install fee entirely. In its place, Apple is introducing th the Core Technology Commission. This is structured as a straightforward and predictable 5% commission on digital transactions for apps distributed outside the official App Store. Alongside this transition, Apple is also completely eliminating both the initial acquisition fee and the store services fee. This should lower the financial friction and administrative overhead for creators looking to reach European users through alternative marketplaces.
The policy updates also introduce a refined and transparent schedule of commission rates across the traditional App Store, alternative app payments, and alternative distribution channels. For developers utilising the standard App Store alongside Apple In-App Purchase, the commission rate will sit at 26%. However, for the vast majority of creators operating in the ecosystem, that rate drops down to 15%. This includes participants in the App Store Small Business Program, the Mini Apps Partner Program, the Video Partner Program, and qualifying auto-renewing subscriptions after their first full year. This tiered approach ensures that smaller indie studios are well-protected while operating within the ecosystem.
For apps leveraging alternative payment processing methods directly within the App Store, the commission is adjusted to 20%, which likewise drops to a reduced 10% for eligible small businesses and special program participants. Similarly, apps that utilise external links out of the application to complete customer purchases will incur a 15% commission, with small businesses and partner programs enjoying the lowered 10% rate. These flexible pathways give developers genuine choices on how they want to manage customer transactions without being penalised by prohibitive administrative costs.
While it remains to be seen how smaller indie studios and massive multi-platform publishers will optimise their financial roadmaps under the new 5% Core Technology Commission and updated tiered rates, the reduction in administrative complexity is an undeniable win. This is clearly Apple trying to adhere to EU regulators while keeping its developer community engaged and productive. Let’s not forget, the company is also working to ensure that its bottom line isn’t massively affected either. October will be a fascinating milestone to watch as these new terms officially take root across the continent.
